Gov. Martinez vetoes NM film subsidy bill

SANTA FE - Gov. Susana Martinez on Friday vetoed a bill that would have sweetened the state subsidy for long-running TV series shot in New Mexico, such as "Breaking Bad."

In response, the sponsor, Rep. Antonio Maestas, redrafted his bill Friday night and began an unusual attempt to move it back through the House of Representatives and the Senate in the last 12 hours of the legislative session.

Maestas, D-Albuquerque, said he was optimistic that the bill would be approved by both chambers by 11 a.m. Saturday, one hour before the legislative session ends.

His bill would maintain a $50-million-a-year state budget for movie and television tax rebates. Moviemakers and TV producers now receive 25 percent rebates on qualified production expenses for filming in New Mexico. It means a producer who spends $10 million in the state gets back $2.5 million from taxpayers.

Maestas' bill would tweak the rebate program in two ways.

TV series, which he says are better for the state's economy than rifle-shot movies, could get a 30 percent rebate if they filmed at least six episodes in the state. The second change would allow up to $10 million of unspent rebate money to be carried over from one year to the next.

Martinez vetoed the bill because she did not get other business-friendly legislation that she wanted.

"This session I expressed a willingness to compromise and consider a measure that expanded the reimbursement rate for television productions," she said.

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"However, I was clear that any such measure must be part of a comprehensive tax reform package that helps create more jobs in New Mexico. Unfortunately, as of the time I am required to take action on (Maestas') bill, the legislature has chosen to only pass a package to increase subsidies to Hollywood while failing to pass reforms designed to diversify our economy and help New Mexico businesses grow."

In an interview, Maestas said legislators have to try to engage Martinez and her staff to move bills that interest her.

"It's difficult working with the executive, with all due respect," he said.

Maestas said he would fight for his bill because it would create jobs.

"It's unfortunate that the 'Breaking Bad' bill became a political football in recent days. We'll do our best to get an identical film incentive bill passed before tomorrow at noon," he said. "By giving the governor more time to reflect on the budget and others bills, I'm confident that this critical jobs legislation will become law."

Martinez would have up to 20 days to reconsider Maestas' bill if legislators approve it for the second time.

The film/TV bill that Martinez vetoed was House Bill 379.

Maestas took the cleanest version, with all amendments from both the House and Senate, and revived it as House Bill 641. It was to have its first committee hearing Friday night and perhaps be back on the House floor before midnight. That would leave him a few hours Saturday morning to try to win Senate approval for his measure.

The original bill cleared the House 64-0 and the Senate 32-8. But with a veto, Republican support for the revived bill is likely to diminish.

Even so, Maestas said he hoped to get the bill approved a second time in hopes that the governor would reconsider her veto.

Milan Simonich, Santa Fe bureau chief of Texas-New Mexico Newspapers, can be reached at msimonich@tnmnp.com or 505-820-6898. His blog is at nmcapitolreport.com

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